Redundancy and Options to Move Forward in Career

Melb69 on 24/09/2019 - 08:31
Last edited 24/09/2019 - 08:32

I work for a design company in Vic for construction industry. The work flow has started to slow and there has ready been word they are thinking of shedding at least 4 staff if things don't pick up. 2 staff have already been let go. Casual.

I am on full time. Can the company single me out for retrenchment using under performance as a reason. My understanding is no. They need to offer redunancy to all staff if they are trying to get rid of staff. Small company. Under 30.

I have only been with the company for over a year. I am more senior by experience, but obviously can't compete against some younger staff for similar task for time. I bring other skills but management have already raised time spent compared to others. I have tried to improve efficiencies. In the end low fees to get the job means less time to produce the product. Me being on a higher salary already puts me in a harder position to complete the same task for low fee.

I would like to stay with the company.

Thoughts every one. Thanks for reading such a long post.

Education & Work

Comments

  • orangetrain on 24/09/2019 - 08:46
    +3

    Clearly it's a long post. Where's the tldr?

    If there's not much happening, look at the job market and update your resume. Keep your options open and be prepared.

  • DuckKnight on 24/09/2019 - 08:47
    +3

    Start looking elsewhere. I had the same circumstance as you last year. Work slowed and the two staff with the least time with the company were let go without redundancy offered to anyone else.

  • 87percent on 24/09/2019 - 08:49
    +2

    should op be on a performance managed plan if "under performing" is the reason? that would be my argument…

    • Melb69 on 24/09/2019 - 08:54

      No plan. Just compared to others. Also think it was to dampen any talk of yearly review. Chance to ask for pay rise.

      • Realsteel on 24/09/2019 - 09:03
        +3

        Performance is bench-marked against your peers. If you are taking more time (as you say) to do the tasks, it can be perceived as you are under performing vs your peers.

        • QW3RTY on 24/09/2019 - 09:23
          +2

          Higher salary, more 'senior' role, taking more time to process tasks than lower paid employees. Not saying it's going to happen, but if the company is looking to trim staff costs, your position may definitely be considered.

          As others have said, be proactive and be agile. If the company is struggling, you're best to make the most sensible strategic decision available to you to keep yourself employed.

          Best to be actively looking while you're still in a role. The best case scenario of job hunting vastly outweighs the negative implications of not doing so.

  • tallkid123 on 24/09/2019 - 09:02
    +4

    Start looking elsewhere (as in right now). Doesn't matter what you want. The company can just get rid of you through redundancy if your salary is too high.

    I got made redundant in late July. You can tell when redundancies often happen if work has slowed down for a considerable length of time. It'll take at least 4 weeks to often find a new role anyway.

  • vikvance on 24/09/2019 - 09:14
    +5

    Can the company single me out for retrenchment.

    They can't single you out as a person, but they can single out your role, if it is unique.

    I mean, if a person is, for example, Senior Widget Designer, and there is only one Senior Widget Designer in the whole company, then they can just eliminate the Senior Widget Designer role, and only one person will end up getting affected.

    • Melb69 on 24/09/2019 - 19:40

      There are more than 1 person in my role and experience.

  • stratbargain on 24/09/2019 - 09:37
    +6

    "I am more senior by experience, but obviously can't compete against some younger staff for similar task for time"

    I'm confused by that comment. Why can't you obviously compete with the younger staff?

    • abb on 24/09/2019 - 13:42

      The whipper-snappers are much quicker at all that new-fangled computer stuff

  • tsunamisurfer on 24/09/2019 - 10:43
    +3

    OP has been with the company for a year.

    The redundancy would likely be between 2-4 weeks, not worth sticking around for if the OP sees the writing on the wall and if a good opportunity presents itself.

  • brad1-8tsi on 24/09/2019 - 10:45
    +2

    1) If it's a performance issue they need to have you on a performance management plan. You don't get made redundant due to performance, you get terminated.

    2) Redundancy applies to a role, not a person. So they might get rid of the Senior Designer role totally or (what I've seen usually). Remove the role off the org chart and wait 6 months until they "suddenly realise" they still need a Senior Designer (possibly with a different title).

    The role I had in 2007, they decided we were all overpaid so they changed the job title, dumbed down the key accountabilities and skills on the job description; graded the role at 30% less remuneration and offered voluntary redundancy to the team. Half of us walked with the cash. The other half stayed at their old rate but it was a really unchallenging job.

  • mini2 on 24/09/2019 - 12:34
    +1

    Sound cruel but they could've got rid of you during your probation period, scotch clean and without any payouts.

    Start looking.

    • brad1-8tsi on 24/09/2019 - 13:26
      +1

      @mini2
      Do you mean "scot free"?

  • AFOS on 24/09/2019 - 12:35

    1. Construction industry is under pressure right now with no light at the end of the tunnel so far.
      https://www.abc.net.au/news/2019-09-15/construction-job-loss…

    2. Under the circumstances (economy downturn, small company, relatively fresh employee) redundancy sounds more like certainty than probability.

    3. While it is completely true that a role becomes redundant rather than a person, FWC are reluctant to interfere when it comes to redundancies. They tend to see it as interference with the business. Having said that, the business still has to comply with certain procedures when it comes to redundancies (consultation with employees, voluntary redundancy offers, selection criteria, possibility of redeployment). By lodging the case you get some damages (usually minor like a couple of weeks' pay) but reinstatement is unlikely.

    4. Redundancy package is expected to be small (2 weeks notice' + 4 weeks' package)

    5. Redundancy is one of the most popular ways to get rid of employees as it is difficult to prove that it is not caused by business requirements. I have seen it many times. Unfortunately there is not much you can do unless you are a friend of the boss or really irreplaceable employee.

    Good luck!

    • Melb69 on 24/09/2019 - 19:38

      @AFOS I already think the writing is on the wall at some point if things don't improve I will be next hence why the post. Thanks for your comments and support. There are at least 3 family, 2 friends, obviously core staff. I would say though at least half could get the notice.

      item 4. If they retrench me my contract says they need to give me at least 3 weeks notice given my age. Also your saying they should give me 4 weeks on top or is that contractual or standard payout. I don't think I have that in my contract.

      • AFOS on 24/09/2019 - 22:26

        Unless you have more generous provisions in your contract (apparently not) your standard entitlements are as follows (based on one completed year of employment):

        • any unused annual leave;
        • notice period 2 weeks (they may require you to work it):
        • 4 weeks' redundancy package (tax free);

        Additional week of notice is given to employees over 45 who completed at least 2 years of service;

        You can play with figures here: https://www.fairwork.gov.au but the baseline is that unless you are covered by enterprise agreement or Award (unlikely in both cases) this is what they are legally required to pay:(

        Hopefully it all will work out.

        • Melb69 on 25/09/2019 - 07:19

          Thanks. Helpful.

  • abb on 24/09/2019 - 13:44

    Are you sure you'd even be entitled to a redundancy payout? It varies by state and award, but I think in some cases you need to work there for 5 years to be eligible.

  • Meho2026 on 24/09/2019 - 15:56
    +1

    I'm interpreting what you have said to mean you hold the same position/job title as some of your colleagues but because you have more experience you are paid more than.

    If some of those positions are made redundant, I think you are at risk especially because you have only worked there for a year. It means they dont have to pay you as much redundancy as someone whos been employed longer.
    It also makes them look as if they are acting fairly by laying off the most recently employed.

    The management will make the decision based on what is best for the future of the company and retaining you over someone who costs less and outperforms you may not be wise.

    Redundancy must involve a consultation process with employees. They have to notify you of whats going on and provide you with an opportunity to respond.
    If there were for example 4 employed in the same role and 2 roles will be made redundant, this could give you an opportunity to highlight your particular value.
    Your maturity and experience may provide better value to the company if it results in a higher quality product.
    The more inexperienced may complete the task faster but the quality may not be there.

    Even though you want to stay with the company, you also need to consider that the company is not growing. It doesnt really matter what the reasons for that are. The company needs to change to survive or its going down the gurgler. It may require a complete change of direction and strong management to pull that off.

    You should definetely be exploring other employment prospects.

  • antojamo on 27/09/2019 - 07:48

    They don't need a reason to retrench you.

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